Bitcoin price could find strength again as Grayscale discusses spot BTC ETF with SEC

●BTC could extend a leg lower to test the $30,000 psychological level if the 25-day EMA gives way at $35,525.

●The bearish thesis will be invalidated once the king of cryptocurrency breaks and closes above the $37,972 resistance level.

Bitcoin (BTC) price suffered the brunt of a tumultuous market on November 21 with the sudden shakeup around Binance. However, things have started to look up again amid revelations that Grayscale is discussing spot BTC exchange-traded funds (ETFs) with the US Securities & Exchange Commission (SEC).

Bitcoin spot ETF discussions continue as Grayscale and SEC engage

Grayscale Investments is still engaging with the SEC, as reported, as the market continues to front-run multiple approvals. The news follows a memo, published by the financial regulator, detailing its discussion with the institutional player, which was revealed by James Seyffart, an ETF specialist with Bloomberg Intelligence.

Based on reports, Grayscale met with the SEC and announced that it had reached a Transfer Agency and Services Agreement with BNY Mellon for its spot BTC ETF.

Grayscale Transfer Agency and Services Agreement

Bitcoin price finds strength, looks for another go at $37,788

Bitcoin (BTC) price remains bullish despite a general weakness lurking. It sits atop the confluence support between the horizontal line and the 25-day Exponential Moving Average (EMA) at $35,525. Unless this support level holds, the king of cryptocurrency could extend lower.

The overall trajectory of the Relative Strength Index (RSI) is southbound, which combined with the red histogram bars of the Awesome Oscillator suggests buyer momentum is waning even as the bears continue to increase their presence in the BTC market.

Increased seller momentum could see Bitcoin price drop to test the $34,000 psychological level, or lower to the 50-day EMA at $33,523. In a worse case, the slump could expand, sending the people’s crypto to the supply zone turned bullish breaker ranging from $30,126 to $31,524.

For a confirmed move south below this level, the Bitcoin price must slip through the 100-day EMA at $31,353 and close below it. This could clear the path for a leg lower to $30,824, or worse, the 200-day EMA at $30,126. This path could dump BTC to the forecasted $30,000 psychological level.

BTC/USDT 1-day chart, Source: TradingView.

On the other hand, resurgence by the bulls could see Bitcoin price restore price action back above the mean threshold at $36,788 or higher, freeing the supply zone’s grasp above its upper boundary at $37,301.

For Bitcoin price to confirm the continuation of the move north, however, it must break and close above the $37,972 resistance level, with the potential to reclaim the range high at $37,980. 

In a highly bullish case, the price could leap higher to tag $40,000, a level last tested in May 2022 before the collapse of the Terra UST ecosystem.